8 Reasons why your business needs an integrated HR system

Apr 05, 2024

In recent years, many businesses have begun automating their HR functions. Having an integrated HR system has shown that it can improve your HR team’s work.

With manual administrative tasks out of the way, your HR team can instead focus their efforts on looking for ways to improve the talent and people management in your organization. 

Reasons to implement an integrated HR system

1. It makes compliance easy

Your HR team never wants to run into compliance issues when it comes to payroll or other requirements within your organization. They’re bad for your business image and cost a lot of money.

Having an integrated HR system will help mitigate the risk of compliance issues arising. Some systems will be aware of current regulations surrounding your business and will be able to help notify you of any violations before they become huge problems.

Related read- 7 steps to setting up payroll for your small business

2. Increases efficiency of work

Some HR and payroll data entry work can be tedious and repetitive when done manually. Not only that, but when there are multiple people involved in the process, you run into the risk of miscommunication, which could then lead to errors.

An integrated HR system eliminates this risk. Data entry becomes a simpler process, and your HR team doesn’t have to waste time chasing down information.

3. Increases data precision

One of the biggest issues with manual administrative work is that it can get very difficult to avoid errors. No matter how careful and meticulous your HR team is, they’re also only human, which means that they aren’t immune to manual errors.

When you introduce integrated HR systems, you can greatly reduce the number of errors made during data entry work. Your systems can also easily track your errors and notify you of them, thus making them easier to fix. 

4. Increases the accuracy of payroll and timely payments

You don’t want to miss salary payments. It’ll raise questions, but more importantly, if salary payments start going out late multiple times, it’ll demotivate your employees and can cause you to lose their trust.

But calculating salary payments require a lot of attention and time. There are a lot of factors like tax, benefits, leaves, and many more. An integrated HR system can help speed up your payroll processes while maintaining accuracy. 

5. Real-time reporting and analytics are made available

Every company will have a review policy when it comes to employee performance.

Whether that’s related to their salary, absence records, or their targets, there will be some form of review. However, without an integrated HR system, performing these reviews frequently might get difficult.

It’s only when you have an integrated human resource management system in place that you can get real-time feedback on your employee performance without having to wait for the annual review.

6. Enhances performance and feedback from employees

No business can run smoothly without its employees putting in good work.

Modern integrated HR systems allow you to set up different types of performance reviews for your employees, thus giving you much-needed feedback on their performance.

Sudden reviews can be tedious, however, which is the opposite of what you want. With an integrated HR system, you can set up automated notifications to remind employees of upcoming reviews and give them time to prepare their schedules. 

7. Drives employee engagement

Having a fully integrated HR system gives you and your employees more flexibility. Employees can feel more in charge of their work journey with your company.

They’ll adopt a bigger sense of accountability when performance tracking is easily available and customizable to them. When your employees feel engaged, they’re likely to perform better at work.

8. Improves user experience

An integrated HR system would mean that all your organization’s HR-related information is easily accessible on a single platform.

Necessary information won’t only be available to the HR department, but rather to every employee in your company with access. This makes it easier for employees to perform tasks like reviews, requesting leaves, and updating their data.

Your HR team’s work will also go more smoothly when they don’t have to switch between multiple systems. 

How can Volopay enhance your existing payroll system?

Your HR department might be key to your business performance, but it’s also important to note that they have to work in tandem with other departments to achieve the best possible results.

When processing payroll, for example, the finance team will have to be on top of things just as much as the HR team. As an expense management platform, Volopay can help your finance team manage your organization’s finances.

Eliminate manual data entry and automate other processes, freeing up more time for your finance team to collaborate with your HR team.

In addition, Volopay’s payroll module will help bridge the gap between your finance, accounting, and HR teams. Data entry for salary payments can be done easily by HR personnel on Volopay’s platform.

When they’ve been approved, your finance team can immediately make the payments to ensure timeliness. All salary payments will be accessible on your payroll ledger, thus giving your accounting team an easier time.

Collaboration between teams is smoother than ever with an integrated HR system like Volopay’s payroll management. 

Suggested read- Payroll for small business: 6 common errors to avoid


What are other different types of HR systems?

Some common types of HR systems apart from a payroll management system include an HR information system (HRIS), applicant tracking system (ATS), onboarding, performance management, employee engagement, learning management, and HR management system (HRMS). Your HR team will typically use these in tandem to better your company’s HR processes. 

What are the essential HR integration features?

Considering what the essential HR duties are in most if not all companies, HR integration features that are must-haves for your organization are features that will help you with payroll, recruitment, employee onboarding, talent management, and approvals for things like leaves or expenses. 

What is the significance of the integrated systems approach to HRD?

HRD, or human resource development, is meant to help employees develop in ways that are in line with what your organization wants from them. This means better skills, knowledge, and productivity. When you have integrated HR systems in place, all the HR functions can be easily viewed and accessed through one platform, making it possible to spend more time and energy focusing on human resource development.

Manage your payroll process efficiently with Volopay